Following a temporary operational halt caused by the expiry of the US sanctions waiver and conflicts in West Asia, the prospects of India’s strategic investment in Iran’s Chabahar port have revived. The breakthrough comes after the US and Iran signed a 14-point memorandum of understanding to end active hostilities, charting a roadmap to lift economic sanctions on an agreed schedule. Seizing this opportunity, India plans to fast-track the 700-km Chabahar-Zahedan rail link to connect the port to Iran’s national railway system, creating a shorter, cost-effective trade route to Central Asia and Eurasia that completely bypasses Pakistan and the China-Pakistan Economic Corridor (CPEC). The rail corridor, estimated to cost $1.5 billion, will be primarily funded by Iran, with India providing engineering expertise and partial funding of $400 million to $500 million over the coming years. The easing of regional tensions also opens the door for the consistent return of competitive Iranian crude oil imports to India after a seven-year gap.